Aircraft, Parts, Supplies, Etc. of Scheduled Airlines With Congressional Franchise

Scheduled airlines operating under a congressional franchise in the Philippines may enjoy certain customs tax and duty privileges on the importation of aircraft, parts, supplies, and related equipment. These exemptions are intended to support the aviation industry, improve air transport services, and help airlines maintain efficient and safe operations.

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Goods Covered by the Exemption

Eligible airlines with a valid congressional franchise may receive tax and/or duty privileges on the importation of goods directly related to airline operations, such as:

• Aircraft and airplanes
• Aircraft engines
• Spare parts and replacement components
• Navigation and communication equipment
• Ground support equipment
• Aviation tools and maintenance materials
• Cabin safety equipment
• Supplies necessary for flight operations

These imported items are generally intended for the use, repair, maintenance, or operation of airline services. For example, if a scheduled airline with a congressional franchise needs imported aircraft spare parts not reasonably available in the Philippines, those parts may be brought in duty-free if necessary for operations.

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Conditions for Availment

To qualify for customs privileges, airlines are generally required to comply with applicable laws and regulations, including:

• Valid congressional franchise
• Authority to operate from the Civil Aviation Authority of the Philippines or relevant aviation regulator
• Proof that imported goods are for airline use
• Submission of customs import documents to the Bureau of Customs

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Common Documents Required

• TEI with accompanying documents
• Goods Declaration
• Bill of Lading or Air Waybill
• Import Invoice / Packing List

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Step-by-Step Import Process

1. Prepare Supporting Documents - The airline or customs broker gathers all import papers, invoices, permits, and proof that the shipment qualifies for duty exemption.
2. File Import Documents with the BOC - The importer files the Goods Declaration and supporting documents with the proper customs office.
3. Submit Proof of Eligibility - The importer presents proof that the airline operates under a congressional franchise and that the imported goods are necessary for airline operations.
4. Customs Evaluation and Verification - The Bureau of Customs reviews the shipment and supporting papers for compliance with Section 800(V) of the CMTA and CAO 06-2020.
5. Release of Imported Goods - Once approved, customs releases the imported aircraft parts, supplies, or equipment for use in airline operations.